Shuttlers, a Nigerian mobility company, has raised a $4 million equity round after raising a $1.6 million seed round. Shuttlers uses its tech-enabled platform to offer shared bus rides to corporate passengers and individuals on scheduled bus routes. The round was led by Verod-Kepple Africa Ventures and saw participation from follow-on investors SheEquity, CMC 21 & Alsa, EchoVC, and VestedWorld—which led its seed round.
The Lagos-based startup is mainly focused on corporate customers. With a B2B2C model, Shuttlers offers companies the opportunity to pay the bus fares for their employees in full or split fares with them. Shuttlers also offers a B2C model where individual customers can pay fares. The fares range from N850 ($1.96) to N1300 ($2.60). The startup also offers its users the ability to track bus trips, choose the best route based on traffic, make digital payments, and view ride schedules.
The traffic situation in Lagos is among the worst in the world. According to a 2018 report, Lagosians spend an average of 30 hours a week in traffic, one of the highest figures in the world. The city has a population of about 24 million people, with over 5 million cars and 200,000 commercial vehicles on the roads. This makes Lagos’s daily average of 227 vehicles per every kilometre of road 20 times higher than the national average.
The effect of traffic on the average Lagosian cannot be overstated. Last year, the Economist Intelligence Unit ranked Lagos as the second-worst city in the world to live in. Shuttlers’ solution, which encourages public transportation, aims to mitigate the traffic situation in Lagos. Public transportation can also reduce environmental pollution, and Shuttlers claims to have reduced its commuters’ carbon footprint by 85%.
According to Shuttlers, the startup covers over 300 routes in Lagos and 2 routes in Abuja and has partnered with over 70 business clients, like Main One, Interswitch, and Paga, and over 270 buses. The startup also claims to have completed over 2 million trips with its B2C offering and 3 million trips in total.
Shuttlers will use its new funding to expand its presence, according to Damilola Olokesusi, the CEO and co-founder of Shuttlers. “This additional funding will allow us to build the infrastructure we need to power mass transit and expand our reach to more communities in Nigeria. We believe that shared mobility can have a transformative impact on our society, and we are committed to driving that change.”